NFTs jump to 27% of ETH gas usage led by Blur market
A new chart looking at Ethereum gas usage by transaction type against a 30-day moving average shows that NFTs now account for 27% of ETH gas usage, up from around 15% towards the end of 2022.
In Ethereum, gas is the unit of measure that determines the amount of work needed to execute a transaction or smart contract on the Ethereum network. The gas price is denominated in Gwei, a sub-unit of Ether.
The amount of gas used in Ethereum transactions varies depending on the type of transaction. For example, simple transactions, such as sending Ether from one account to another, require less gas than complex smart contract executions or multi-sig authentications.
NFTs, or non-fungible tokens, are a type of digital asset that represents ownership of a unique item or piece of content, such as artwork or game collectibles. NFTs have become increasingly popular on the Ethereum network, and according to recent data, they now account for a significant portion of Ethereum’s total gas usage, 27%.
However, a new market competitor has recently upgraded the NFT market, which analysts point to as a reason behind the recent increase in NFTs as a percentage of ETH gas usage.
How Blur starts sucking ETH gas
This week, Blur, a new NFT marketplace, achieved a significant milestone by surpassing OpenSea in daily NFT trading volume, and has now passed UniSwap and Seaport to become the leading “Gas Guzzler” on the Ethereum network.
On Wednesday, February 15, Blur’s daily trading volume reached 6,602 ETH, surpassing OpenSea’s 5,649 ETH for the first time. This achievement has resulted in skyrocketing Ethereum gas fees due to the increase in trading activity.
According to Crunchbase, Blur has a valuation of $1 billion, funded by Paradigm, Coinbase Ventures & E-GIRL Capital to the tune of $11 million in seed funding in the first round in March 2022.
Blur offers its users attractive benefits such as zero trading fees, a key factor likely contributing to the increase in gas usage.
The platform released its original token, BLUR, on February 15 and rewarded its most active users with token airdrops. The airdrop resulted in a significant increase in Blur’s trading volume, albeit an 84% price drop. The platform airdropped a total of 360 million BLUR tokens as of yesterday, setting a record high for its own trading volume of $1.59 billion.
According to DappRadar, Blur has surpassed OpenSea in both 7-day ($435.24 million) and 30-day ($711.83 million) trading volume.
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